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Will Africa balance nexus between transport, logistics & food security?
Amid persistent delays in supply chains that continue to challenge food security across West Africa, the question looms large: how can the region improve its road, rail, and port infrastructure to reduce disruptions and cut food losses? Tobio Olsa, co-founder of logistics company Hall 247, shared his insights on possible strategies during a recent interview.
The issue is dire. According to the World Bank, food travels an average of 4,000 kilometers over 23 days across African countries—four times longer than the same journey in Europe—resulting in increased transportation and storage costs that drive up the prices of staple foods. “The middle mile to the last mile in our supply chain is the most problematic,” said Olsa. Transporting food from production points to storage and subsequently to consumers faces significant obstacles due to an infrastructure gap.
This gap is costing nations like Nigeria heavily. “Food losses in Nigeria are valued at 3.5 trillion Naira annually,” Olsa pointed out, emphasizing that addressing infrastructure woes is crucial. “The key is to invest wisely to expand capacity, especially considering Nigeria’s current deficit of trucks compared to smaller European nations.”
Technology, according to Olsa, holds the potential to transform the industry by improving efficiency and optimization. “Nigeria only has around 40,000 trucks, whereas the average European country has over 200,000,” he said, explaining the acute need for investment not only in increasing the number of vehicles but also in utilizing current assets more efficiently.
Investment in technology means automating port operations and facilitating faster clearance and distribution of goods. Olsa emphasized the transformative power of modernizing the port processes using tracking systems and digitized payment solutions. “The entire process of moving goods needs to be digitized, from tagging containers with IoT devices to leveraging AI,” he explained, underscoring the importance of knowing precisely where goods are in the supply chain at all times.
Decongesting ports is a top priority alongside streamlining road and rail infrastructure to ease transportation bottlenecks. However, for lasting impact, handling post-harvest losses through a holistic solution is equally critical, given the African Continental Free Trade Area (AfCFTA) offers new export opportunities. Olsa advocates for an integrated approach that includes comprehensive infrastructure – from transport to cold storage – and an increase in asset financing.
“Investment in new assets is crucial,” he noted. Most of the trucks are outdated, leading to frequent breakdowns and accidents, which compound the delays and financial losses. Asset financing models could facilitate purchasing new trucks suitable for the demands of modern logistics.
With Hall 247 working toward an all-encompassing logistics solution, the message is clear: African countries must prioritize building robust logistics networks to minimize food wastage, improve pricing, and capitalize on new market opportunities offered by free trade agreements.
“Only by creating a seamless, one-stop logistic solution can we truly turn the tide against persistent food security challenges,” Olsa concluded.
As West Africa marches toward economic prosperity, the integration of technological innovation and infrastructural development in logistics remains vital.”
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